Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Investment Securities
  5. Security Entitlements
  6. Duty of Securities Intermediary to Exercise Rights as Directed by Entitlement Holder

Checkout our iOS App for a better way to browser and research.

A securities intermediary shall exercise rights with respect to a financial asset if directed to do so by an entitlement holder. A securities intermediary satisfies the duty if:

  1. The securities intermediary acts with respect to the duty as agreed upon by the entitlement holder and the securities intermediary; or
  2. In the absence of agreement, the securities intermediary either places the entitlement holder in a position to exercise the rights directly or exercises due care in accordance with reasonable commercial standards to follow the direction of the entitlement holder.

(Code 1981, §11-8-506, enacted by Ga. L. 1998, p. 1323, § 1.)

RESEARCH REFERENCES

U.L.A.

- Uniform Commercial Code (U.L.A.) § 8-506.


Download our app to see the most-to-date content.